ENP Newswire -
Release date- 03092014 -
Details of the Company's financial results are described in the Unaudited Consolidated Interim Financial Statements and Management's Discussion and Analysis which, together with further details on the Company's operational activities, are available on the Company's website at www.newzealandenergy.com and on SEDAR at www.sedar.com. All amounts are in Canadian dollars unless otherwise stated.
Significantly improved netback of
19,066 bbl produced and 20,390 bbl sold during Q2-2014 (Q2-2013: 18,573 and 21,958, respectively)
Average corporate production during Q2-2014: 228 bbl/day (net to NZEC)
Total oil sales recorded during Q2-2014 of
Generated first natural gas sales (
New arrangement with gas marketing counterparty commenced
Realized total net proceeds of approximately NZ$1.76 million through disposal of non-core assets
PROPERTY REVIEW & OUTLOOK
Total corporate production during the first six months of 2014 averaged 214 bbl/d net to NZEC. Total corporate production during the second quarter averaged 228 bbl/d in April, 201 bbl/d in May and 231 bbl/d in June. Production in July averaged 202 bbl/d, with a small increase in August (up to
The TWN wells (with the exception of
Production from three of the Copper Moki Permit wells has remained very stable year to date. The fourth well, Copper Moki-3, has been shut-in since early March and will remain shut-in until a revised artificial lifting system has been evaluated to deal with the sand accumulation in this highly deviated well.
NZEC and L&M formed the TWN JA, with NZEC as the operator, to explore and develop the TWN Licenses and operate the
The TWN JA is focused on optimizing production from its wells. As part of the optimization process, in
The ESP was operated initially using a portable generator, which limited the pumping capacity and did not adequately draw down fluid levels in the well. In
A number of wells on the TWN Licenses, with previous production from the Tikorangi Formation, have uphole completion potential in the shallower Mt. Messenger Formation. The TWN JA recompleted one well uphole in the Mt. Messenger Formation (Waihapa-2) and achieved production from that well in
The TWN JA has determined that jet pump is the appropriate lift for this well, since jet pump would enable any unconsolidated sand around the well bore to be produced to surface, thus reducing the potential to sand up the well. The TWN JA appointed an engineering firm to design and prepare a cost estimate for the installation of surface jet pumping facilities, and expects to make its final investment decision shortly.
If approved in Q3-2014, the well could be brought on production in Q4-2014. NZEC expects that the well will be recompleted with dual packers to segregate the upper and lower Mt. Messenger zones. This will allow the zones to be tested both separately and collectively, providing production flexibility and allowing the TWN JA to gain valuable information about both Mt. Messenger zones.
The TWN JA has identified four additional production opportunities in existing wells on the TWN Licenses, along with numerous new 3D drill targets in the Mt. Messenger, Moki, Tikorangi and Kapuni formations. The Company's ability to drill new exploration wells is contingent on its financial capacity, as discussed above.
The TWN JA continues to identify opportunities to generate revenue from the
The arrangement is expected to generate between NZ$250,000 and NZ$1 million revenue per year (net to NZEC). First gas commenced flowing on
Eltham Permit and Copper Moki Permit
To date the Company has drilled ten exploration wells on its 100%-owned Eltham and Copper Moki permits. Four have been advanced to production. Of the ten wells drilled, only one well (Wairere-1) failed to encounter hydrocarbons and was immediately sidetracked. One well (Copper Moki-4) made an oil discovery in the Urenui Formation and has been shut-in pending additional economic analysis and evaluation of artificial lift options.
Wairere-1A was drilled to the Mt. Messenger Formation and encountered hydrocarbon shows, with completion pending. Arakamu-2 made an oil discovery in the Mt. Messenger Formation and has been shut-in pending evaluation of artificial lift options. Waitapu-1 is shut-in pending further testing or sidetrack to an alternate target and Arakamu-1A, a Moki Formation well, is suspended pending further evaluation. The Company continues to assess these opportunities as new reservoir data becomes available from the Company's activities on the TWN Licenses.
NZEC is actively seeking farm-in partnerships to allow the Company to accelerate exploration of additional high-priority drill targets on the Eltham Permit.
At the date of this MD&A, the Company has produced approximately 275,323 bbl from its Copper Moki Permit wells (including oil produced during testing), with cumulative pre-tax oil sales from inception of approximately
All of the Copper Moki Permit wells produce light 41o API oil from the Mt. Messenger Formation. Oil is trucked to the Shell-operated Omata tank farm in New Plymouth and sold at Brent pricing less standard Shell costs.
Using internally generated gas for these activities, rather than purchasing it, has significantly reduced operating costs at the
During 2014, the Company plans to drill a new exploration well on the Alton Permit. The current work program for the Alton Permit requires the Company to drill an exploration well by
However, certain conditions associated with the consents have prompted the Company to lodge an appeal for mediation. In order to allow time for the appeal and anticipated mediation, NZEC has requested an extension to the drill date to at least Q1-2015.
NZEC is actively seeking farm-in partnerships to allow the Company to accelerate exploration of additional high-priority drill targets on the Alton Permit.
The Company announced on
The Company announced on
The work previously undertaken by the Company on these permits has yielded significant technical information and insight into the
NZEC is an oil and natural gas company engaged in the production, development and exploration of petroleum and natural gas assets in
NZEC plans to execute a technically disciplined exploration and development program focused on the onshore and offshore oil and natural gas resources in the politically and fiscally stable country of
This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively 'forward-looking statements'). The use of the word 'will', 'expect', 'intend', 'optimize', 'hopeful', 'will', 'should', 'would', 'could', 'plans', and similar expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including, without limitation, the speculative nature of exploration, appraisal and development of oil and natural gas properties; uncertainties associated with estimating oil and natural gas reserves and resources; uncertainties in both daily and long-term production rates and resulting cash flow; volatility in market prices for oil and natural gas; changes in the cost of operations, including costs of extracting and delivering oil and natural gas to market, that affect potential profitability of oil and natural gas exploration and production; the need to obtain various approvals before exploring and producing oil and natural gas resources; exploration hazards and risks inherent in oil and natural gas exploration; operating hazards and risks inherent in oil and natural gas operations; the Company's ability to generate sufficient cash flow from production to fund future development activities; market conditions that prevent the Company from raising the funds necessary for exploration and development on acceptable terms or at all; global financial market events that cause significant volatility in commodity prices; unexpected costs or liabilities for environmental matters; competition for, among other things, capital, acquisitions of resources, skilled personnel, and access to equipment and services required for exploration, development and production; changes in exchange rates, laws of
Such forward-looking statements should not be unduly relied upon. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct.
Actual results could differ materially from those anticipated in these forward-looking statements. The forward-looking statements contained in the document are expressly qualified by this cautionary statement. These statements speak only as of the date of this document and the Company does not undertake to update any forward-looking statements that are contained in this document, except in accordance with applicable securities laws.
Hispanic #1 Breaking News for Entrepreneurs, Professionals and Small Business Owners - HispanicBusiness.com
OCTOBER 30, 2014
|Customer Service||Policy||Advertise||Site Tools|
|HispanicBusiness Services||Editorial Guidelines||Ad Specifications||Magazine Archive|
|List Rental Agreement||About Us||Media Kits||Post Your Event|
|HireDiversity Job Search||Editorial Calendar||Research|
© 2014 HispanicBusiness Inc. All Rights Reserved.